SBA proposal would allow FinTech participation
Published by: Sean Brown
January 12, 2023 | Political Action, Smaller Credit Unions
As credit unions continue to look for opportunities to cement themselves as key community development institutions, being able to rely on programs like the Small Business Administration’s (SBA’s) 7(a) lending program is integral to helping small businesses in their communities get started, grow, and flourish. The League sought to protect credit unions’ safe access to 7(a) programming as the SBA considers allowing new and emerging financial technologies (FinTechs) to be eligible participants. The League submitted a comment letter cautioning the SBA against opening the floodgates to participation without requiring reasonable and equitable safeguards that protect program integrity and accommodate the already prudentially regulated financial institutions.
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